Chinese smartphone brand Vivo is planning to integrate its independent sub-brand iQOO into its main business in order to reduce costs and increase efficiency, according to a report by Chinese publication 36 Krypton. The two companies already share R&D facilities, a channel system, a supply chain, and much more; however, the brands had different approaches to planning, user operation, media strategy, word-of-mouth promotion in the station, and e-commerce.
Vivo iQOO to merge?
Citing close sources from Vivo, the report said that high-level executives at Vivo have talked about merging teams like brands and media strategies. This means that iQOO may no longer have its own stores and counters. It’s not clear yet if iQOO will stay a separate business unit or not.
“The internal bosses are still struggling. What is the positioning of iQOO in the future and how to integrate the team are still uncertain,” a former employee was quoted as saying by the publication.
Based on conversations with ex-iQOO employees, the report states that the two groups are working on completely separate user waves. Yet, while being part of Vivo’s provincial agency structure, each iQOO store and sales counter operates independently.
The report noted that Vivo is yet to respond on the matter. We will update you when either of the brands respond formally to the issue.
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iQOO was launched in China in 2019 but was introduced in India in February 2020. Since then, iQOO has released a number of high to mid-range smartphones in the Indian and global markets. It is marketed as having the best performance and the best gaming experience.
